371Transfer of land subject to building and development

371 Transfer of land subject to building and development provision—approval generally (1) The territory planning authority may, in writing, approve a transfer of a lease that includes a building and development provision if— (a) the authority is satisfied that the proposed transferee intends to comply with the provision; and (b) the proposed transferee has given any security required by the authority for compliance with the provision; and (c) either— (i) the proposed transferee has entered into a contract with the proposed transferor under which the proposed transferor is to build a home on the land described in the lease; or (ii) the authority is satisfied that 1 or more of the matters mentioned in subsection (2) (a special circumstance) applies. (2) Each of the following is a special circumstance: (a) the lessee cannot, for personal reasons prescribed by regulation, comply with the building and development provision; (b) the lessee cannot comply with the building and development provision for financial reasons connected with the lease;

Building and development provisions—transfer of land Division 10.12.3 (c) an unforeseen major event outside the lessee’s control happened after the lessee was granted the lease, and the event has had a demonstrable effect on the lessee’s ability to develop the land described in the lease; (d) the transfer of the lease is— (i) by the Territory, a territory entity, the Commonwealth or a Commonwealth entity (an entity); and (ii) within the entity’s functions; and (iii) necessary because of a change in a policy of the Territory, the Commonwealth or the entity that affects at least 1 other transfer. Examples—unforeseen major events—par (c) 1 a bushfire 2 a large increase in interest rates (3) For subsection (2) (b), a financial reason is connected with the lease unless— (a) the reason is that the lessee has borrowed an amount, using the land as security, for a purpose other than the grant of the lease or the development of the land; and (b) the amount is used for a purpose other than to meet an expense arising from a personal reason prescribed by regulation for subsection (2) (a). Examples—financial reasons not connected with lease 1 expenditure on purchase of other land 2 purchase of luxury car 3 expenditure on extended overseas holiday

Division 10.12.4 Noncompliance with building and development provisions